Every year, the Audit Diwas is marked on November 16. The day was first celebrated in 2021. The day is celebrated to highlight the rich contributions of Comptroller and Auditor General.
Why is Audit Diwas celebrated?
The Audit Diwas is celebrated to mark the origin of Comptroller and Audit General and his institution. Also, the day celebrates the contribution made by CAG office to governance, its accountability and transparency in the past several years.
What is the significance of celebrating Audit Diwas?
The CAG audits the expenditure of the central government and the state government. It was established under Article 148 of the Constitution. The CAG is a statutory auditor. Apart from government audits, he also conducts supplementary audit of companies where the Government of India has an equity share of 51%. The CAG is ranked ninth in the order of precedence. He enjoys the same status as that of a Judge of Supreme Court. Therefore, it is important to highlight the work of CAG.
Why is Government of India celebrating Audit Diwas?
The CAG acts as a watchdog of GoI finances and functioning. The CAG is the head of the Indian audit and accounts. He is also the guardian of public purse. He makes sure if the public money collected as taxes is utilized by the Government in the right way. The CAG is one of the strongest walls of democratic system. Thus, GoI is celebrating Audit Diwas.
When was CAG established in India?
- The CAG was established for the first time in 1858. The first CAG began in India with Lord Canning. A separate department was established to audit the financial transactions under the East India Company.
- Sir Edward Drummond was the first Auditor General and he took charge in 1860. The term Comptroller and Auditor General was first used in 1884.
- In 1919, under the Montford Reforms, the Auditor General became independent of the government
- In 1935, the Government of India Act strengthened the position of Auditor General.
How will celebrating Audit Diwas benefit India?
It is essential to celebrate the roles and responsibilities of CAG in the country. In the CAG has captured several misuses of public money.
- For instance, in 2011, the CAG report on issues of Licenses and Allocation of 2G spectrum estimated that there is a loss of 23 billion USD by the UPA Government.
- In 2012, a CAG report on coal mine allocation found out that the “Windfall Gain” to the allocatees was 140 billion USD. Windfall Gain means unexpected gain due to luck prize or winning lottery. In simple terms, the GoI could have allocated the coal blocks more efficiently.
- In 1995, the CAG exposed fodder scam in Bihar. It alleged fraudulent withdrawal of 130 million USD of Government funds.
- In 2011, the CAG reported sharp drop in production of gas and violations in Mukesh Ambani’s company. To this, the oil ministry imposed fine of Rs 7,000 crores.
Thus, the role of CAG is highly honourable. Therefore, celebrating Audit Diwas will help to increase the lime light on its functioning.
Topics: Audit Diwas
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